DMI income not enough for 13 and make to much for a 7

[Hammer]

[newbie2]

See another attorney (or two). Just from eyeballing your budget : You have nothing noted for food, clothing, gas for your car, insurance, etc. Those alone would bring the DMI down and could help you qualify for a Chapter 7.

Even though you make a "high" income you clearly have high expenses: Child support, etc.

Get a 2nd and 3rd opinion if need be.

[Hammer]

newbie

Thanks for the reply, this is my 3rd lawyer and they all say the same thing.....the $385DMI is what they came up with after doing the means test, the two that i have paid did the Means test and it are very close with the numbers.

I have had 3 different lawyers do a conslut and I paid the one I though would do the best and after he came up with the $385.00 and told me boy you sure fall is the middle where BK is concerned I paid a second one for his services, and this is where i'm at.....I don't see how I can possible pay the $1300.00 a month untill I get out of house lease or default on my 401K paln, which I can't unless I lose my job and if that happens this is all a moot point.....( are you happy MSBK)

[newbie2]

Something isn't making sense. If the DMI is 395 or so, where does the over 1000 number come from? Is there an asset that you are trying to protect that isn't covered by exemptions?

[MSbklawyer]

this is all a mute point.....

Moot. Sorry, pet peeve.

[Hammer]

Moot. Sorry, pet peeve.

like I'm worry about moot or mute....lol...I hope you really have better things in life to do. Now, go out and have a great weekend.

[Hammer]

Something isn't making sense. If the DMI is 395 or so, where does the over 1000 number come from? Is there an asset that you are trying to protect that isn't covered by exemptions?

the $1295.00 is what he says is the least I could get by with paying just paying secured back over 5 years. That is the problem I can fund the 13 according to him, I have tried to default on the 401K laon , but I can't and cutting every where I can I only come with about DMI of $600.00 with the cuts

I have nothing after the divorce, long story....gave her everything house, business, 27 years of marraige and I didn't even get a lawyer....we will leave it at that.

Thanks again

[momofthree]

Are you really paying $928 in utilities for your house? That just sounds like a crazy high amount!

[LALADY]

In a Chapter 7, your DMI is reduced for your 401k loan payments

IF

and only IF

it is MANDATORY as a CONDITION OF EMPLOYMENT that you have to repay the loan per the terms.

[Hammer]

momofthree

Are you really paying $928 in utilities for your house? That just sounds like a crazy high amount!

The $350.00 is for home and gas is for my car also.....

My utilities are as follow...

Budget Bill Georgia Power $259.00
Home gas $49.00
Water/Sewage $65.00
Cable TV $99.00
Phone $69.00
Waste fee $15.00

[SMinGA]

You mention a home & car with # months remaining. Can you get into a less expensive home and/or car? The # months remaining is irrelevant when you're considering bankruptcy, as any balances owed would be wrapped into the plan.

[LALADY]

What happens to your DMI under Ch7 calculation if you take off your 401k loan payment?

[Hammer]

You mention a home & car with # months remaining. Can you get into a less expensive home and/or car? The # months remaining is irrelevant when you're considering bankruptcy, as any balances owed would be wrapped into the plan.

I rent and the lease is not out untill Sept 2011 as for my truck its my only way around and I make my living as a salesperson and travel 500 miles a week doing my job, as for trading down , i'm so upside down on this truck and really high miles, 159,000 on 2005. and with my credit shot trading is not in the stars....

Thanks for the input.

[LadyInTheRed]

This isn't making sense. You say you have a car loan with $13,839 in payments remaining and a $22,000 tax bill. That's $35,839. 60 payments of $1295 = $77,700. Why would you need to pay that much to the plan? To repeat Newbie's question, are there assets you are trying to keep that aren't within your state's exemptions? Is there other secured debt you haven't mentioned?

My logic could be flawed, but here's how I see it assuming you don't have more secured debt and are not trying to keep assets: Your current DMI of $385 x 60 months = $23,100. Add to that 14 months in 401k loan payments that you can contribute after the loan is paid (14 x $790 = $11,060) and you can pay $34,160 into the plan over 60 months. Not quite enough to fund a plan. Can you delay filing for a while so you can pay down the car and 401k a little more? How about letting the bank have the car and buying a less expensive one? I believe you can reject the lease in BK and your obligations to the landlord become unsecured debt. So, if you can get a cheaper place to live, you could increase your DMI to help fund a Chap 13 Plan.

If your attorney is estimating such a high payment because are trying to keep assets, you will have to give them up if you want to file BK.

P.S. after seeing your last response: You may be able to cram down that car loan. I'm not sure of the time requirements. Try searching the boards for info.

[Hammer]

What happens to your DMI under Ch7 calculation if you take off your 401k loan payment?

what do you mean if I take it off? if you mean not to pay it or default on it, my DMI would go up to $1095.00 and I could come close to funding a 13 that is the problem the only way i can break the loan is to get fired or quit....according to our CFO